Some disabled people will lose the mobility element of their disability allowance. Photograph: F Sierakowski/Rex Features

Today's comprehensive spending review is thought to have hit welfare claimants harder than any other group, with big changes to tax credits and housing benefit. It means those at the bottom of the pile are likely to feel the impact of government cuts more than middle income families. Here's how the spending review will affect hypothetical people in four typical demographics.

Mabel: Pensioner and widow, 77, living in a care home

Mabel claims disability allowance because she uses a wheelchair but she will lose the mobility element of the allowance – worth around £33 – on the grounds that she does not need a specially adapted car or scooter. She will be better off as a result of being an Equitable Life policyholder and serious saver, as she can expect to get a £2,200 payment from the government. Mabel will continue to receive other benefits, including a free TV licence for which the BBC is likely to have to pick up the total bill.

Jane: Single Teacher, 52

She faces a double whammy as she is worried about redundancy thanks to cuts to the Department of Education's budget – with warnings of the loss of 40,000 teaching jobs. Plus, like others under the age of 55 she was hoping to retire on the state pension at 65, but will be disappointed after the chancellor said he was raising the state pension age to 66 in 2020. Women are hardest hit by this proposal, as their current scheme for moving from 60 to 65 years will be dramatically accelerated.

Jack and Jill: Working parents (and standard rate taxpayers) of a baby and a toddler.

The reduction in working tax credits, which cuts the percentage of costs that working parents can claim back for their childcare, will make the family worse off. And as a regular train commuter into London, and rail season ticket holder, Jack will be hit hard by plans to increase fares from 2012. At present the annual increases in regulated fares, which include season tickets, are capped at 1% above the retail price index (RPI) inflation level. Mr Osborne said that from 2012 the cap will be RPI plus 3% which – if introduced next January – would have meant season tickets going up almost 8%.

The chancellor has boosted the child element of the Child Tax Credit by an extra £30 above inflation next year and £50 in 2012-13, which will leave families like Tracy's better off. She will be relieved that child benefit for children over 16 will not be cut. But her housing costs could spiral out of control. The average rent for a three-bedroom social home is around £85 a week – and the National Housing Federation warns that this could triple to a "staggering" £250 a week. In the longer term, she will also benefit from 15 free hours of early education and care for all disadvantaged two-year-olds. The existing 15 hours a week of free care for all three- and four-year-olds will be maintained.

• This article was amended on 2 November 2010. The original said that Mabel would be better off as a result of the decision to put "emergency" cold weather payments on a permanent footing. This has been deleted as incorrect. To clarify: residents of care homes are not eligible for such payments unless they have disabled children or those under 5 living with them.

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